IRONDALE, Ala. – The $842 million Corporate America CU said it has applied for Part V investment powers from NCUA. Part V would allow the corporate to engage in loan participations. Loan participation is an area more corporates are considering getting into as they look for ways to help credit unions meet loan demand while reducing interest rate risk or avoid regulatory caps. Georgia Central CU, for example, launched its participation service last year that uses the Web to match up CUs. Corporate America CU CEO Thomas Bonds said since corporates are the natural repository for credit unions' surplus funds they are the perfect vehicles to broker participations. Corporate America may also hold some loans on its books. Bonds said business lending has really started to take off in Alabama and the corporate may be able to help CUs getting close to the MBL cap through the use of loan participations.
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